PIPA In the News

Mon
21 May
2018

Help! My property manager is stealing rent

The banning of a Sunshine Coast property manager for stealing nearly $47,000 in rent has raised questions around what investors can and should do in similar situations.

We asked an expert to find out.

Elizabeth Anne Provan, director and former principal licensee of Dicky Beach Real Estate Pty Ltd, was found guilty of wrongfully converting trust money and acting as unlicensed property agent after charges were brought by the Office of Fair Trading (OFT) for breaching the Property Occupations Act 2014.

Ms Provan, who did not appear at the Caloundra Magistrates Court, was fined $25,000 after converting rent money for her own use and asking tenants to place rent money into her own personal account, which totaled $46,793, from January to July 2017. She was also banned for 10 years.

Thu
17 May
2018

This is why housing is more affordable now than in 1990

Is there really a housing affordability crisis?

Now I'm not arguing that it's hard to get into the housing market - it is, but maybe it's no harder than before. 

According to the Property Investment Professionals of Australia (PIPA) those arguing property's lack of affordability haven't studied the numbers properly.

In fact their research suggests that mortgages are more affordable now than they were in 1990...

"Many commentators use just two indicators to measure housing affordability – income and house prices," PIPA Chairman Peter Koulizos said.

"This is a good measure to indicate how expensive housing is, but if you want to analyse affordability, you must also consider mortgage repayments."

PIPA examined annual figures looking at the average size of a home loan, the standard variable rate, principal and interest loan repayments and the annual average wage from 1990 to today.

Wed
16 May
2018

Property advisers need regulation

The banking royal commission has highlighted the drastic need for property investment advice regulation, according to the Property Investment Professionals of Australia (PIPA).

Among the revelations about dodgy operators and unsound financial advice was the example of a former planner who allegedly directed clients to purchase property from an advocacy service of which he was the majority owner, a fact he did not disclose.

The planner was found to have not acted in the client's best interests during a company audit.

PIPA chairman Peter Koulizos said that while that planner was also subject to regulation, the provision of property investment advice generally remains largely a free-for-all and that anyone can set up shop as a property investment 'adviser' without any qualifications.

Fri
11 May
2018

Rent stealing PM fined $25K, banned for 10 years

A Sunshine Coast property manager has been fined $25,000 and banned for 10 years after stealing nearly $47,000 in rent. If you find yourself lumped with a PM like this, what can you do? We asked an expert to find out.

Elizabeth Anne Provan, director and former principal licensee of Dicky Beach Real Estate Pty Ltd, was found guilty of wrongfully converting trust money and acting as unlicensed property agent after charges were brought by the Office of Fair Trading (OFT) for breaching the Property Occupations Act 2014.

Ms Provan, who did not appear at the Caloundra Magistrates Court, was fined $25,000 after converting rent money for her own use and asking tenants to place rent money into her own personal account, which totaled $46,793, from January to July 2017.

Fri
11 May
2018

"A good budget for investors"

With the budget's guts now laid bare, property experts have had time to think about what it means for investors. As it turns out that, for the most part, it is a good one.

After last year's budget that saw investors reeling with the loss of asset claiming and travel expenses, they were able to catch a breath with this year's budget.

However, this is because there were no measures that directly targeted property investors at all.

Wed
09 May
2018

Land banking tax incentives axed

Accountants with clients currently holding vacant land may be caught off guard by a new tax integrity measure to deny deductions as the government seeks to free up land in a housing affordability play.

The government has proposed that from 1 July 2019, deductions for expenses associated with holding vacant land will be denied to address concerns that deductions are being improperly claimed for expenses, such as interest costs, related to holding vacant land, where the land is not genuinely held for the purpose of earning assessable income.

This measure will not apply to expenses associated with holding land that are incurred after a property has been constructed on the land, it has received approval to be occupied and is available for rent; or the land is being used by the owner to carry on a business, including a business of primary production

Wed
09 May
2018

Budget 2018 - 'A good budget for investors'

With the budget announced in its entirety, property experts have had time to think about what it means for investors; it turns out that, for the most part, it is a good one. Here's what the experts are saying about this year's budget.

After last year's budget that saw investors reeling with the loss of asset claiming and travel expenses, they were able to catch a breath with this year's budget.

However, this is because there were no measures that directly targeted property investors at all.

Wed
09 May
2018

Budget 2018 - Why you should care about the 'unfair' vacant land tax changes

While on the whole, this year's budget was good for property investors, there's one little thing nestled away in one of the budget papers — changes to vacant land tax. Here's what it means for investors.

The one singular change that could see property investors that develop or build to rent getting riled up are the changes to vacant land tax, which will now see deductions not available to those who own vacant land with the intent to build straight away.

Peter Koulizos, chairman of the Property Investment Professionals of Australia, said that this change could actually work against what the government has set out to do and may deter investors who build to rent.

Mon
07 May
2018

Budget 2018-19: What the experts are expecting

Depending on what comes out of the yearly budget, investors could see sweeping changes, or they might not be affected at all. Here's what some experts are expecting to see, and what they want to see.

Last year, the 2017–18 budget removed tax depreciation on established properties as well as travel deductions and introduced measures to combat housing affordability, the former shocking investors, and the latter being viewed as a "sledgehammer approach" when the related legislation was released.

What some experts are currently saying is that we can expect to see no changes targeting investors at all, with some indirect changes that can work in the investors' favour.

Fri
04 May
2018

Mortgages are more affordable now than nearly 30 years ago

Mortgages are more affordable now than they were in 1990, according to recent analysis by the Property Investment Professionals of Australia (PIPA). Yet there are those who still argue that there's a lack of property affordability.

"Many commentators use just two indicators to measure housing affordability – income and house prices," PIPA chairman Peter Koulizos said. Koulizos sees them as good measures to predict how expensive a house is, but he believes it's also important to considering mortgage repayments in order to analyse affordability.

To come up with its analysis, PIPA examined the average size of a home loan, the standard variable rate, principal and interest loan payments, and the annual average wage from 1990 to present day.

 

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